On the 29th they go into a standard two day trading halt pending...

On the 29th they go into a standard two day trading halt pending an announcement. During this time they release the quarterly update which shows the project is on time and under budget. All systems go for an on time production start. They also have $71m in the bank so don’t need any cash right now and are far from over a barrel with the lenders.

Last week they went into suspension from quotation ..pending release of an announcement by the company concerning its convertible bond facility..

So that’s where we are.

The conversion price in US$ equates to A$2.15. The current share price is 26cents. It’s fair to say that Lynas got it’s funding at the top of the market and those terms now look a bit pants if you are the bondholder. Particularly as the interest can be paid in further issuance. It seems to me that the bondholder may be doing all they can to get out of the deal.

This is an interesting situation and makes investment decisions even harder. A company with all it’s funding arranged can still have the rug pulled out from under it if those providing the funding change their minds. The only safe investment is one where cash is raised via an equity deal and that cash is in the bank. Having funding arranged suddenly seems like a meaningless statement. I suspect a lot of these "arrangments" have plenty of clauses that allow the lenders to change their minds.

Meantime we must wait to find out if they get the cash or not. If they do the SP will rise, if not it will collapse. We continue to live in interesting times.